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How Does Chapter 13 Work? Credit Card Debt Reduction Example Plan.

Determining the right plan to get your finances back on track can feel overwhelming. How do you determine which option is going to provide the best long term outlook and the quickest debt relief? Ultimately it is best to consult with a professional.

Our firm offers free consultations to review your circumstances, determine the best course of action and clearly explain everything that is involved with the process. Call us today at 866-261-8282 to speak to one of our qualified Chapter 13 attorneys or to schedule an appointment at one of our offices in Detroit, Ann Arbor, Dearborn, Southfield, Flint or Warren, Michigan.

Many people want to get a realistic understanding of how the Chapter 13 bankruptcy works. Since it is a customized debt management program based on your personal debt and income, ultimately we would need to run a specific budget scenario for you. But to give you a general understanding, here is a practical example of how the Chapter 13 reorganization can fix runaway credit card debt and medical bills. This example demonstrates how a Chapter 13 plan works to balance your monthly budget, reduce your debt-to-income ratio and therefore improve your credit score.

Example Chapter 13 Plan: Monthly Budget and Debt Reduction Potential

Example: Household family of 4, Mounting credit card debt and medical bills due to a temporary income interruption during a medical leave. Both spouses are back to work, but debt has become overwhelming.

Legally eliminated over 96% of unsecured debt at the completion of the program;

Court protection from creditors during the repayment plan. This means no calls, no law suits, etc.

All unsecured debts are paid back at 0% interest with no additional penalties;

Without the restructuring opportunity of a Chapter 13 for a 3 year time period, this family would have accrued an ADDITIONAL $62,964.00 worth of debt due to an unbalanced budget (high credit card minimum payments). Instead, the family was able to eliminate debt…the difference between doing nothing and completing the Chapter 13 is a whopping $152,964.00 savings!

Put Our Experience to Work for You

This hypothetical scenario is presented to describe a few of the potential benefits of a Chapter 13. We offer a free Credit Card Calculator budgeting tool designed to help you understand what it would take to achieve a zero balance with your credit card debt. We encourage you to take an assessment of your credit card debt.

We offer free consultations to help you better understand what the specific benefits of Chapter 13 Reorganization would be for your personal finances. Schedule an appointment with one our experienced debt reduction attorneys to discuss how to get you finances on the right track. Our licensed attorneys are dedicated to helping our clients navigate the best debt solution. We are here to help; call us today at 866-261-8282.

How Can WeHelp You?

I would give the Acclaim team an A+. The team never made us feel any less then important to each of them from the Desk Clark to the Trustee – I must say…. the communications that I had with Nicole M. Hollihan was always great – e-mails and voice mails were answered in a timely matter – I had several…

Sandy & Bob

(Westland, MI)

Greetings Julie! This is to let you know about our experience with Acclaim Legal Services regarding our Chapter 13 Bankruptcy case. Chris made the journey easy because of his prompt replies to our emails and phone calls. He always kept us abreast of what was going on and reassured us that we would…

Samantha

(Ann Arbor, MI)

Thank you for taking the time on Monday, to explain to me all the details of my case. I really learned a lot from our talk. There should be more people in the world like yourself to make time for others that don’t understand the legal/law side of business.

Thanks so much and God Bless you…

Karen

(Madison Heights, Michigan)

My overall experience with Acclaim Legal Services has been excellent. They created a workable budget for me while allowing me to reduce my debt. They were very prompt and helpful when I had questions or concerns. They helped me modify my home mortgage so that I could live stress free after my chapter…

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